ASE Semiconductor, a subsidiary of ASE Technology Holdings, announced plans to build the K28 factory in Kaohsiung through a joint construction agreement with Hongjing Construction. The project, set to be completed in the fourth quarter of 2026, will focus on advanced packaging, terminal testing, high-performance computing, and heat dissipation for AI chips.
At a press conference, ASE Investment Holdings’ Chief Financial Officer, Dong Hongsi, explained that ASE Semiconductor owns 2,660.98 ping of the 6,283.09 ping land in Kaohsiung Dashe, while Hongjing Construction will fund the project. The K28 factory will be a seven-story building with a floor area of approximately 10,883.62 square meters. The joint construction rights value distribution ratio is set at 22.24% for ASE Semiconductor and 77.76% for Hongjing Construction.
Upon completion, ASE Semiconductor and Hongjing Construction will register property rights based on this ratio. ASE Semiconductor or its subsidiaries will have the first right to purchase Hongjing Construction’s property rights.
The K28 factory construction is part of ASE Semiconductor’s operational growth plan for its Kaohsiung plant. Following the completion of the K27 factory in 2023, the K28 factory is expected to further meet the advanced packaging process needs and high-performance computing and heat dissipation requirements of AI chips.
ASE Semiconductor emphasized its strong, long-term partnership with Hongjing Construction, which will help ensure the timely completion of the K28 factory despite rising material costs and labor shortages in the construction market. Hongjing Construction’s expertise and resources are crucial for meeting the project schedule.
In December 2023, ASE Semiconductor announced the leasing of Taiwan Fore Electronics’ factory in Nanzi, Kaohsiung, to expand packaging production capacity. This expansion is part of ASE’s strategy to enhance advanced packaging production for AI chips.
The Kaohsiung plant, accounting for approximately 20% of ASE Technology Holdings’ overall revenue, provides packaging, wafer bumping, pin testing, materials, and finished product testing services. The plant features several smart light-off factories specializing in high-end processes like fan-out packaging, system-in-package (SiP), wafer bumping, and flip-chip packaging. These processes cater to the automotive, medical, IoT, high-speed computing, artificial intelligence, and application processor markets.
